Venus Inc., a software consulting firm, had depreciation of $20.8 million and a net
interest expense of $3.2 million for the past year. The firm’s operating profit for the
same year was $319.0 million. What was the firm’s taxable income for the past year?
a. $400 million
b. $299.2 million
c. $295 million
d. $316.8 million
Individuals who purchase new products almost as soon as these products reach the
market are called _____.
a. late adopters
b. laggards
c. consumer innovators
d. hesitant buyers
A(n) _____ is a secure network used for emarketing and accessible through the firm’s
website by external customers, suppliers, or other authorized users.
a. wiki
b. extranet
c. encryption
d. emarketing
e. private exchange
f. bot
g. search marketing
h. electronic signature
i. phishing
j. blog
k. clickthrough rate
l. conversion rate
m. electronic shopping cart
n. firewall
o. eprocurement
p. vishing
q. spam
r. podcast
s. preroll video ad
t. engagement
A salesperson should be judged on the basis of potential ability rather than the actual
sales performance.
a. True
b. False
In the 1800s, more than 90 percent of Americans worked in _____ industry.
a. shipping
b. automobile
c. service
d. farming
Paul Simmons owns a food distribution business and employs approximately 80 people
in a variety of positions including executive management, administrative support
personnel, sales, distribution, and marketing. He’s very interested in maintaining a
positive work culture and aspires to being one of the best places to work in his region.
He recently hired a marketing consulting firm to complete an employee satisfaction
study for him to gain insight into how his workers view their job, benefits, supervisors,
and other important elements such as compensation and benefits. What type of data best
describes this project?
a. primary data
b. secondary data
c. syndicated data
d. government data
According to the BCG matrix, if a question mark cannot become a star, the firm should
pull out of the market and target other markets with greater potential.
a. True
b. False
You just inherited the family business from your uncle who ran it successfully or over
twenty-five years. You worked in the business during those years, and always vowed to
change things once you took over ownership. Specifically, you came to realize that your
uncle ran the business with a transaction-based mindset that produced good results, but
not optimal results. You vowed to shift the business towards a relationship-based
approach when you took over.
Based on your philosophy, which of the following characteristics do you plan to instill
in the company’s new approach to doing business?
a. Treat customers as equal partners in the buyer-seller exchange.
b. Limit communications with customers.
c. Focus on selling products and selling them quickly.
d. Have a short-term focus in the interactions with customers.
e. Focus on new sales rather than repeat sales.
Product recalls and repairs are handled through reverse channels.
a. True
b. False
_____ is a retailing practice of combining dissimilar product lines to boost sales
volume.
a. stock-keeping unit (SKU)
b. markup
c. markdown
d. retail convergence
e. scrambled merchandising
f. atmospherics
g. broker
h. general merchandise retailer
i. category killer
j. rack jobber
k. supercenter
l. auction house
m. specialty store
n. retailers
o. mass merchandiser
p. truck jobber
q. direct marketing
r. drop shipper
s. planned shopping center
t. wheel of retailing
Marketers direct some parts of their social media marketing efforts toward trust
building in order to facilitate the twoway conversation between the company and the
consumer.
a. True
b. False
Slotting allowances refer to money paid by producers to retailers to guarantee display of
their merchandise.
a. True
b. False
The depth of product mix refers to the variations in each product the firm markets in its
mix.
a. True
b. False
Which of the following constitutes nonpersonal selling?
a. Product placement in a TV show
b. Face-to-face interaction between a buyer and a seller
c. Telephonic conversation between a buyer and a seller
d. A videoconference between a marketer and a customer
Few businesses want the distinction of being the first to charge higher prices.
a. True
b. False
Your technology company has decided to form a strategic alliance with a major
technology company based in South Korea. Which of the following statements is TRUE
about the characteristics, benefits and business aspects of a strategic alliance?
a. Each company will give up some of its autonomy while gaining new opportunities
from the alliance.
b. The alliance will require both companies to change their organizational structures.
c. The alliance will guarantee that each company will expand into new markets.
d. The alliance may help each company to develop an advantage over its competition.
e. The alliance will involve your company and the South Korean company pooling
resources to form a separate business entity.
A profit-maximizing price rises to the point at which further:
a. increases will cause proportionate decreases in the number of units sold.
b. decreases will cause disproportionate decreases in the number of units sold.
c. increases will cause disproportionate decreases in the number of units sold.
d. increases will cause disproportionate increases in the number of units sold.
The Internet has impacted business for new firms by increasing the barriers to market
entry.
a. True
b. False
Human behavior is solely a function of pressures exerted by external environmental
forces on the individual.
a. True
b. False
Common carriers move freight via all modes of transport.
a. True
b. False
Global marketing is rapidly becoming a necessity for most U.S. companies.
a. True
b. False
Tabitha is a marketing consultant working with an advertising agency who has recently
launched a radio and social media campaign for a new beverage product. The
advertising agency is interested in determining the percent of people in the target
market who have been exposed to the advertising message and can “recall” the
message. Tabitha recommends that a phone survey be utilized to contact individuals
with mobile phones. Tabitha works with the local mobile phone companies to determine
the relevant prefixes or 3-digit numbers for individuals in the area and then instructs the
research call center to randomly identify the remaining 4 numbers to ensure that all
members of the population who have a mobile phone have an equal opportunity of
being selected to participate in the study. Tabitha is using the ______ sample method.
a. simple random
b. stratified
c. cluster
d. nonprobability
Which of the following is an advantage of implementing a one-product, one message
approach to international marketing?
a. enhanced recognition of the company’s brand
b. higher marketing expenses
c. increased adoption of the brand
d. reduced competitive threats
The want satisfying power of a product is its _____.
a. utility
b. buzz marketing
c. exchange process
d. seller’s market
e. buyer’s market
f. marketing myopia
g. social responsibility
h. relationship marketing
i. person marketing
j. place marketing
k. event marketing
l. organization marketing
m. interactive marketing
n. lifetime value of a customer
o. social marketing
p. onetoone marketing
q. strategic alliances
r. notforprofit organizations
s. ethics
t. mobile marketing
u. wholesalers
v. transactionbased marketing
A balance sheet contains more marketingrelated information than an income statement.
a. True
b. False
An automated teller machine (ATM) is an example of a convenience service.
a. True
b. False
Marketers offer rebates in order to:
a. cover the costs spent by the retailers on advertising the products.
b. reward the retailer for prompt payment of bills.
c. reward a retailer who agrees not to advertise products below set prices.
d. reduce the price paid for a product by customers.
Which of the following is a principal method used in sales training?
a. In-house classes
b. Application screening
c. Aptitude tests
d. Assessment center
A partnership is an affiliation of two or more companies that help each other achieve
common goals.
a. True
b. False
_____ refers to the percentage of people presented with a banner ad who click on it.
a. wiki
b. extranet
c. encryption
d. emarketing
e. private exchange
f. bot
g. search marketing
h. electronic signature
i. phishing
j. blog
k. clickthrough rate
l. conversion rate
m. electronic shopping cart
n. firewall
o. eprocurement
p. vishing
q. spam
r. podcast
s. preroll video ad
t. engagement
The management at Fries, a potato chips manufacturer, is calculating their quarterly
profits. According to the official data, the firm has sold 200,000 units of their chips
priced at $2 per unit for the quarter. The firm had spent $100,000 on production,
processing and other costs. The profit made by Fries for the quarter is:
a. $400,000.
b. $300,000.
c. $200,000.
d. $100,000.
You have recently taken over responsibility for your firm’s social media marketing
strategy. You believe your chances for success will be enhanced if you follow a
structured approach to developing the strategy. In the past, using the traditional sixstep
approach to developing a social media strategy has worked well for you. You are
inclined to stay with the same process as you develop your firm’s strategy. Since you
believe in the process, which of the following guidelines will you follow as you set
goals for the strategy?
a. A clear set of goals will facilitate the strategy development.
b. The goals should be somewhat vague in order to allow the marketer to claim success
regardless of the outcome.
c. The goals should not be constrained by the firm’s social media policies.
d. The goals should be set so they are easily attainable.
e. The goals should identify which social media platforms are to be used.
Which of the following terms refers to the nonpersonal stimulation of demand for a
good, service, person, cause, or organization through unpaid placement of significant
news about it in a published medium or through a favorable presentation of it on the
radio or television?
a. Publicity
b. Advertising
c. Product placement
d. Sponsoring
Which of the following is an advantage of newspaper advertising?
a. offers high levels of flexibility
b. high reproduction quality
c. low circulation
d. highly segmented audience